Delta's stock price declines following sales forecasts that fall short of expectations.

• Delta expects fourth-quarter earnings of between $1.60 and $1.85 a share.
• In the third quarter, Delta reported a 45-cent earnings hit due to the CrowdStrike outage, which cost the company $380 million in revenue.
• It is likely that consumers will put off their travel plans in the U.S. due to the upcoming election, as stated by CEO Ed Bastian.

The company anticipates an increase in earnings during the fourth quarter due to persistent travel demand and robust bookings for upcoming holidays.

LSEG reported that the Atlanta-based carrier forecast fourth-quarter adjusted earnings of $1.60 to $1.85 per share, which is above the adjusted $1.28 per share it reported a year earlier and higher than Wall Street estimates of $1.71.

Delta shares were down more than 5% in premarket trading.

The carrier anticipates a 1-point decrease in revenue due to lower demand before and after the Nov. 5 U.S. presidential election, despite initial estimates of a 4.1% increase in revenue from a year earlier.

"CEO Ed Bastian stated in an interview that he anticipates some choppiness around the election, as seen in past national elections. He believes that consumers will pause in making investment decisions, both discretionary and other things. Other industries are also likely to discuss this issue."

He added that holiday bookings are very strong.

Based on consensus estimates from LSEG, how did Delta perform in the third quarter compared to Wall Street expectations?

• Earnings per share: $1.50 adjusted vs. $1.52 expected
• Revenue: $14.59 billion adjusted vs. $14.67 billion expected

Delta reported that the CrowdStrike outage in July resulted in a 45-cent hit to adjusted earnings, which came in at $1.50 per share, slightly below analyst estimates. Despite the outage, which affected thousands of Windows machines and led to the cancellation of thousands of flights, Delta struggled to recover. The incident resulted in a $380 million hit to revenue, Delta said.

CrowdStrike and Microsoft are being sued by Delta for damages caused by the outage, as stated by Bastian.

"In his opinion, the havoc created should be fully compensated for, and the matter is now in the hands of attorneys, with the hope of a resolution but keeping all options open."

Delta's net income increased by 15% to $1.27 billion in the three months ended September 30, while total revenue rose by 1% to $15.68 billion. Despite a steady passenger revenue, sales from premium offerings such as first class continued to exceed the main cabin.

Delta's president, Glen Hauenstein, stated that the airline industry's supply growth is rationalizing, which will benefit Delta in the final quarter of the year and as they move into 2025. The carrier plans to increase capacity by 3% to 4% in the fourth quarter.

Delta anticipates its full-year adjusted earnings to fall between $6 to $7 per share, excluding the impact of CrowdStrike.